Question
Q1.(a)Instead of helping his father at a mechanic shop with a salary of RM1,500 per month, Ali decided to operate a burger stall in Ipoh.
Q1.(a)Instead of helping his father at a mechanic shop with a salary of RM1,500 per month, Ali decided to operate a burger stall in Ipoh. Every month, he is able to sell 2000 unit of burgers at the price of RM2.00 each. His monthly expenditures are RM400 for the chicken patty, RM400 for buns, RM320 for eggs, RM200 for butter, RM120 for cabbages and RM40 for sauce. He also needs to pay his monthly rental of RM50 to Ipoh Town Council. Besides selling burgers, he has another part-time job as an insurance agent. Therefore, he needs a car to do sales and also to pick his children from school. So Ali decided to apply a RM50,000 personal car loan from Bank Bumi. To pay for his car down payment, he needs to withdraw from his savings that could earn him RM1,000 per year in interest. Calculate Ali's burger stall cost structure below, (ceteris paribus):
(i)Total revenue
(ii)Accounting cost
(iii)Economic cost
(iv)Accounting profit
(v)Economic profit
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